Why it's a good time for the producers and exporters of premium, flavoured orthodox teas

It's a good time for the producers and exporters of premium, flavoured orthodox teas. The demand from Iran and Iraq for orthodox teas is almost two decades high and both the countries are expected to import 40 - 50 million kg each from India which is likely to increase the overall tea exports by 10 per cent in calendar year 2024 touching 250 million kg.

In 2023, India’s tea exports stood at 228 million kg. In 2023, India had exported around 5.5 million kg of orthodox teas to Iran and 33 million kg to Iraq.

Anish Bhansali, managing partner of Bhansali & Company, a tea exporting firm said “ The price that the two Middle East countries are offering is Rs 80 per kg more on an average compared to last year. The demand is very high for orthodox teas from these two countries.”


Depending on the variety and quality, orthodox tea is fetching a price of Rs 200 – Rs 600 per kg this year. India annually produces around 120 million kg of orthodox teas. As the name signifies, orthodox teas are made in a more traditional way. The leaves are carefully hand-plucked and processed to preserve their natural form. The process involves withering, rolling, oxidation, and drying, ensuring that the leaves retain their original shape and distinct characteristics.

Mohit Agarwal, Director, Asian Tea said “Orthodox tea is on fire. Payments are not being delayed like last year. As of now there is no worry about payment. The Iranian government is releasing money in a restricted manner on a case-to-case basis to the Iranian buyers. The demand is very high. The Indian ambassador in Iran Rudra Gaurav Shresth has also helped the Indian tea trade a lot to normalise exports of tea from India.”

In November 2023, Iran halted most tea imports after uncovering a $3.4 billion embezzlement by the nation's only tea importer, involving government subsidies for tea blending for export, which had impacted Indian tea exports to Iran.

Agarwal also added that orthodox exports to Russia has picked up well. “If everything goes well, then overall exports this year could be 10 per cent more than last year,” he said.

However, Bhansali added that the situation in Iran should not escalate so that the exports are impacted.